HMRC in the UK to start direct recovery of tax debt from bank accounts

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Going forward, HM Revenue and Customs (HMRC) in the UK hope to improve the figure of total tax owed and unpaid. They will do this by collecting sums owed from tax payment and credit debts directly from borrowers’ bank accounts who have a minimum cumulative credit of £5,000. Additional measures have been included following the consultation.
From now on, HM Revenue and Customs (HMRC) in the UK hope to improve the figure of total tax owed and unpaid. They will do this by collecting sums owed from tax payment and credit debts directly from borrowers’ bank accounts who have a minimum cumulative credit of £5,000. Additional measures have been included following the consultation.

The HMRC hopes this additional safeguard will contribute towards making a more efficient and fair tax system for those who have pay on time. It will also enable debts to be recovered directly from balances held in bank accounts in credit of those who have the means to pay but choose not to do so.

Businesses or individuals who have debts of over £1,000 payable to the Commissioners for Revenue and Customs under a contract settlement will be eligible for the new scheme. This includes funds held in cash in ISAs (Individual Savings Accounts).